Aurigny Air Services
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Re Aurigny's announcement that it wants its owner, the Guernsey Government, to underwrite £19,000,000 worth of commercial loan so that it can buy more aircraft.
Channel News:-
Aurigny want Guernsey's States to act as guarantors on a loan of nearly 19 million pounds so it can buy new planes.
The company says it needs the two ATR 72-500s to replace older leased aircraft.
Aurigny was bought by the States in 2003.
It isn't asking taxpayers to stump up the money, but will instead borrow in the private sector.
If the money is borrowed commercially, but guaranteed by the Government, the lender has no risk whatsoever, while Guernsey States has ALL the risk. So it has to make provisions for this future possible/probable liability, and that ties up the taxpayers cash which cannot, under normal accounting rules, be used elsewhere. It must be kept in reserve, and if not Guernsey States may well be facing bankruptcy, in accounting terms.
So that's £19m worth of public service priorities taking second place to a very high-risk investment indeed. And if Aurigny gets into trouble, that's up to £19m, plus all the other money sunk into Aurigny (£10m+?), flushed down the pan. About £500 per taxpayer in Guernsey, I suspect, perhaps a lot more, and I'm one of them.
It's pure spin, worthy of Gordon Brown who does exactly the same with PFI schemes, to pretend that a guarantee by a Government is not using taxpayers money, by putting it at risk.
Let's hope that people in Guernsey are not taken in by this piece of b******t.
And then there is the little matter of fair competition; how can anyone compete with an airline that's funded in this way from the public purse. The loan will be much cheaper than on a commercial basis, precisely because there is no risk to the lender, while the risk is carried by taxpayers at no cost to Aurigny.
Channel News:-
Aurigny want Guernsey's States to act as guarantors on a loan of nearly 19 million pounds so it can buy new planes.
The company says it needs the two ATR 72-500s to replace older leased aircraft.
Aurigny was bought by the States in 2003.
It isn't asking taxpayers to stump up the money, but will instead borrow in the private sector.
If the money is borrowed commercially, but guaranteed by the Government, the lender has no risk whatsoever, while Guernsey States has ALL the risk. So it has to make provisions for this future possible/probable liability, and that ties up the taxpayers cash which cannot, under normal accounting rules, be used elsewhere. It must be kept in reserve, and if not Guernsey States may well be facing bankruptcy, in accounting terms.
So that's £19m worth of public service priorities taking second place to a very high-risk investment indeed. And if Aurigny gets into trouble, that's up to £19m, plus all the other money sunk into Aurigny (£10m+?), flushed down the pan. About £500 per taxpayer in Guernsey, I suspect, perhaps a lot more, and I'm one of them.
It's pure spin, worthy of Gordon Brown who does exactly the same with PFI schemes, to pretend that a guarantee by a Government is not using taxpayers money, by putting it at risk.
Let's hope that people in Guernsey are not taken in by this piece of b******t.
And then there is the little matter of fair competition; how can anyone compete with an airline that's funded in this way from the public purse. The loan will be much cheaper than on a commercial basis, precisely because there is no risk to the lender, while the risk is carried by taxpayers at no cost to Aurigny.
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Is there more to come out of this?
Getting rid of two ATR72s which are Ex Gill Air if I remberber, and who was tied with Gill Air when the plug was pulled not the leasing company?
To replace them with newer ones is a good idea but who is behind the leasing companies?
Would the Guernsey States be the leasing company.
Getting rid of two ATR72s which are Ex Gill Air if I remberber, and who was tied with Gill Air when the plug was pulled not the leasing company?
To replace them with newer ones is a good idea but who is behind the leasing companies?
Would the Guernsey States be the leasing company.
It appears to me that Aurigny want to buy the aircraft,(I smell a rat in that option) with the Guernsey States (Government) acting as guarantors on the loan -Not a good idea. Surely leasing would be a better option, although I would think a leasing company without in-house connections would be more favourable to the electorate.
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New ATR's
Ok Aurigny's existing ATR's are awful, constantly going tech but why on earth do they need to buy two completely brand new ones. The states will eaither agree to this and Aurigny and the Island will go bust, or they'll put Aurigny up for sale (I think the second option is the best).
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Commercial Capping
It's strange to see the States of Guernsey inviting competition from airlines to start new air services into/out of GCI.
Just a thought, but why doesn't the Guernsey government invest more money into Aurigny to kick start some triangular routes (via JSY) into nearby Europe as well as some into the UK. Crossair used to operate a successful ZRH service on that basis.
Alternatively, perhaps Aurigny could be sold to another operator who understands how to run an airline profitably. Governments aren't best placed to run commercial enterprises and at the present time Mr H and his team are to an extent, hands-tied.
Either, or. But set it free and let it fly!
I'm curious to know who the relevant Deputy is who might have the main say in seeling the company. Does anyone know?
Brighter horizons all............
Just a thought, but why doesn't the Guernsey government invest more money into Aurigny to kick start some triangular routes (via JSY) into nearby Europe as well as some into the UK. Crossair used to operate a successful ZRH service on that basis.
Alternatively, perhaps Aurigny could be sold to another operator who understands how to run an airline profitably. Governments aren't best placed to run commercial enterprises and at the present time Mr H and his team are to an extent, hands-tied.
Either, or. But set it free and let it fly!
I'm curious to know who the relevant Deputy is who might have the main say in seeling the company. Does anyone know?
Brighter horizons all............
Last edited by hyatt_1_alpha; 25th Jun 2007 at 20:34.
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Not very likely. They tried to expand their route network a few years ago and cut it right down again. If even GCI-AMS didn't work (despite AMS being such a major hub) I very much doubt they'd try destinations further afield. Guernsey doesn't get an awful lot of visitors from outside the UK, and with a population of all of 40,000 there isn't enough of a local market to fill lots of flights.
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Originally Posted by Flyingvisitor
with a population of all of 40,000 there isn't enough of a local market to fill lots of flights.
Está servira para distraerle.
This is what has got them all so worried.......
Taxman to swoop on non-dom’s daily grind
By Jean Eaglesham and Vanessa Houlder in London
Published: February 19 2008 22:03 | Last updated: February 19 2008 22:03
Business travellers tempted to grab a quick coffee with a contact between flights should beware the tax inspector if they are among the thousands who enjoy the benefits of not being classed as a UK resident.
From April, HM Revenue & Customs will extend its remit to airport lounges as part of a series of tax reforms that include the contentious clampdown on non-domiciled residents.
When draft legislation for the new measures was published in January, the government initially said the days people spent travelling in and out of the UK would count towards the 91 days that qualify visitors as UK residents, making them liable for UK tax unless travellers stayed “airside” in parts of the airport not accessible to non-travellers.
However, after business lobbyists claimed the measure was too harsh, the Revenue came up with a partial reprieve. HMRC officials told tax advisers in meetings last week that anyone simply in transit through the UK would not have that day counted towards the 91-day tally, even if they left one airport and traveled to catch a plane at another.
But there is a sting in the tail. The Revenue says the reprieve will apply only if no work is done in the UK on the day in question.
“The example they give is of someone landing at Heathrow and then fitting in a meeting before catching a later flight from Gatwick,” said Andrew Tailby-Faulkes, a partner at Ernst & Young. But, he says: “What if you have a quick meeting with a colleague in Starbucks? Does sending e-mails from a laptop breach the new guidelines? And how will the rule be policed effectively?”
A Treasury spokesman said: “We are aware of the potential issues for some transit passengers and are considering this as part of the consultation.”
'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''''''''''''''
The short answer is that the days of the financial adviser leaving the Channel Islands for the England on a Monday morning and returning on a Wednesday evening and logging the three days in the UK as one day are over. It remains to be seen what this does to the business passenger figures on Aurigny and anyone else operating a schedule between the Channel Islands and the UK.
One thing is for certain though and that is that the burden of proof will be upon the executive to prove that he did not conduct any form of business during his transit through the UK. Given that HMRC now have almost unlimited powers to tap into electronic correspondence and telephone lines, silence during transit is going to be the watchword.
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What nexrt?
Is the there any HEART left in the company, things seem to be slipping away?
It does seem very strange to put an ATR72 and 42 for lease when the company does need at least half an aircraft as back up.
Will Aurigny be drawing in on some of the schedules for the summer with only 2 ATR72s to keep going all summer?
The Trislanders are no good to back up an unservicable ATR on the routes they operate, it has been know for the Trislander to do the Bristol before now.
It does seem very strange to put an ATR72 and 42 for lease when the company does need at least half an aircraft as back up.
Will Aurigny be drawing in on some of the schedules for the summer with only 2 ATR72s to keep going all summer?
The Trislanders are no good to back up an unservicable ATR on the routes they operate, it has been know for the Trislander to do the Bristol before now.
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According to the Aurigny website, the summer schedule is merely a continuation of the winter one with regards to Guernsey-UK services, The GCI-MAN remains at twice daily and not three times as last summer, and there seems to be no extra flights to BRS or STN, the current winter schedule only requires two ATR 72's, however you do need to take into account that Aurigny's ATR's are getting on a bit now, and go tech very often. So should the two aircraft be taken on, they would have no back up. So Titan/Flightline, prepare yourselves for a fair few Guernsey flights in the coming months, its always nice to see a Titan 146 or 737 land in Guernsey.
Yes, the "Wales" liveried ATR42 G-CDFF is often to be seen operating for an tech 72. The Other 42 G-SSEA has been in the hangar for sometime so it may be the one going out on lease.....
I heard a few months back that there were to be fewer flights to BRS & MAN this summer compared to last.
I heard a few months back that there were to be fewer flights to BRS & MAN this summer compared to last.
Last edited by Jerbourg; 26th Feb 2008 at 19:39. Reason: Additional info